Technical Analysis: Breakout
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A beauty of a breakout on the Nasdaq today (see first chart below). The index gapped straight out of a one-month trading range, which gives a target of about 1770. However, the index closed pretty much right at 1719 resistance - equaling the October rally in percentage terms - so a pullback here wouldn't be surprising. 1685 is support, and 1757 is first resistance. The trend is now up again, but the 1750-1800 area could pose heavy resistance. If you followed the CBOE equity put-call ratio on Thursday, you would have seen heavy put buying on the unemployment data, a good hint that the next move might be up. The S&P and Dow (second and third charts) now must follow the Nasdaq to new highs, above 1015 and 9352. Support is 990 and 980 on the S&P, and 9110-9130 and 9075 on the Dow.
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